SB 1001: "An Act authorizing an advisory vote on a long term financial plan for the state; and providing for an effective date."
00SENATE BILL NO. 1001 01 "An Act authorizing an advisory vote on a long term financial plan for the 02 state; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. ADVISORY VOTE. At a special election to be held on September 14, 1999, 05 in substantial compliance with the election laws of the state, including absentee voting, the 06 lieutenant governor shall place before the qualified voters of the state a question advisory to 07 the legislature and the governor. The question shall appear on the ballot in the following 08 form: 09 Q U E S T I O N 10 Preamble: The state treasury's reliance upon declining Alaska oil production 11 and volatile oil prices constitutes an unsustainable state budget system. The 12 legislature and governor seek the public's input in choosing a long-term budget 13 plan. Please mark "yes" beside one or both plans that you believe the 14 legislature and governor should proceed to implement as a balanced budget
01 plan or "no" beside one or both plans that you believe the legislature and 02 governor should not implement as a balanced budget plan. 03 "Plan A" Description 04 Summary of Plan A: Plan A has further spending reductions. Dividends are 05 a percentage of the value of the Alaska permanent fund. This plan has no 06 personal income tax. 07 (1)Spending Reductions/Spending Limits: Continue state general fund 08 budget reductions of at least $70,000,000 over the next two fiscal 09 years. 10 (2)Permanent Fund: Guarantee the Alaska permanent fund is inflation- 11 proofed to protect the value of the principal of the fund for all Alaskans, including future 12 generations. 13 (3)Permanent Fund Dividends: Guarantee a dividend is paid to qualified 14 Alaska residents at a minimum of $1,700 in 1999 and $1,700 in 2000. 15 Thereafter, the annual dividend is based on a rate of 2.75 percent of the 16 combined market value of the Alaska permanent fund, including the 17 Alaska permanent fund earnings reserve account, and the constitutional 18 budget reserve fund. 19 (4)Permanent Fund Earnings Reserve: Guarantee inflation-proofing the 20 Alaska permanent fund and payment of permanent fund dividends, then 21 prioritize remaining funds in the Alaska permanent fund earnings 22 reserve account for education, public safety, and transportation. 23 (5)No Income Tax: Use at least $100,000,000 in new revenues instead of 24 implementing new broad-based taxes. 25 Plan A Yes [ ] Plan A No [ ] 26 "Plan B" Description 27 Summary of Plan: Plan B has no further state spending reductions. Dividends 28 from the Alaska permanent fund are calculated under the current method. This 29 plan includes a personal income tax. 30 (1)Spending Reductions: No further reductions to state spending. 31 (2)Permanent Fund: Guarantee the Alaska permanent fund is inflation-
01 proofed to protect the value of the principal of the fund for all Alaskans, including future 02 generations. 03 (3)Permanent Fund Dividends: Dividends will not be changed from the 04 current formula and method of calculation. 05 (4)Permanent Fund Earnings Reserve: Immediately transfer 06 $4,000,000,000 from the permanent fund earnings to the constitutional 07 budget reserve fund, with an additional $4,000,000,000 in 2010, and 08 $4,000,000,000 in 2020. Spend the constitutional budget reserve fund 09 earnings for state government services. 10 (5)Income Tax: Impose a personal income tax on certain wage earners 11 projected to be 31 percent of a person's federal income tax, collecting 12 $350,000,000. 13 Plan B Yes [ ] Plan B No [ ] 14 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).